Full Employment and Social Benefits, 1917–53 (Edexcel A-Level History): Revision Notes
Full Employment and Social Benefits, 1917–53
Introduction: The Marxist view of work
Between 1917 and 1953, Soviet leaders Lenin and Stalin attempted to build economic systems that rewarded work and provided social benefits like healthcare. Their approach was rooted in Marxist theory, which fundamentally views capitalism as a system that fails to reward labour properly.
Marx argued that under capitalism, wealth comes from property ownership rather than work. Capitalists were seen as parasites who profited from workers' labour without contributing to their wellbeing. In contrast, Marx believed that after a socialist revolution, society should progress through two stages:
The Two Stages of Marxist Society:
Socialist stage: The principle would be "from each according to their ability, to each according to their ability." This meant that work, not property ownership, would determine access to economic resources.
Communist stage: A higher principle would apply - "from each according to their ability, to each according to their need." Marx envisioned that society would become so productive that people could contribute what they could and receive what they needed, regardless of their individual contribution.
These ideas shaped Soviet policy throughout this period, though the reality often fell short of the theory. While Lenin and Stalin tried to create systems linking work to benefits, economic problems consistently undermined their capacity to provide for everyone.
The Contradiction of Communist Practice:
Party members consistently received better benefits than ordinary workers, creating a new form of privilege that contradicted Communist ideals. This pattern would persist throughout the entire period from 1917 to 1953, undermining the egalitarian principles at the heart of Communist theory.
Lenin's approach to work and benefits (1917–1921)
The Declaration of 1918
Lenin's policies were directly influenced by Marx's theories. In 1918, he published the Declaration of the Rights of Toiling and Exploited People, which established two revolutionary principles:
Revolutionary Principles of 1918:
Abolition of private land ownership: This prevented capitalists from making money simply through property ownership. The goal was to eliminate the traditional capitalist class.
Universal labour duty: This requirement that everyone must work was designed to "eliminate the parasitical layers of society." It ensured that former capitalists could no longer live off others' labour without working themselves.
These principles became fundamental to every Soviet Constitution and continued to influence policymakers until 1991, though their implementation varied considerably over time.
Early challenges: Work 1917–18
Creating stable employment proved extremely difficult during the revolutionary period. The upheaval of 1917 caused severe economic disruption. Around 570 industrial enterprises had closed between March and August 1917, and unemployment exceeded 100,000 by October 1918.
The Impact of Revolution on Employment:
The situation worsened after the October Revolution when Lenin ended Russia's participation in the First World War. The cessation of war production caused unemployment to surge dramatically.
By March 1918 in Petrograd:
- 75 per cent of chemical and metal workers found themselves without jobs
- The city faced dire economic conditions
- Factory closures accelerated across major industrial centres
During this chaotic period, Lenin emphasised labour discipline and encouraged cooperation between workers and their former employers, now called bourgeois specialists. Crucially, these specialists no longer profited from property ownership; instead, they received wages for managing factories and organising production.
However, these early policies failed to prevent economic collapse and rising unemployment, leading to more drastic measures under War Communism.
War Communism: Work and benefits, 1918–21
War Communism represented a radical reorganisation of work and welfare. In theory, it created a reciprocal relationship: workers had a duty to provide labour, and the government had a duty to provide food and basic necessities.
Compulsory labour ended the unemployment crisis of early 1918. From September 1918, able-bodied men aged 16 to 50 lost the right to refuse employment. Those in work received a work card that entitled them to food rations - essentially making work mandatory for survival.
The system reflected Marxist principles by allocating resources according to the value of work. After money was abolished, the population was divided into six groups based on occupation. The rationing system was explicitly class-based:
The Class-Based Rationing System:
- Working-class people received the highest rations
- Middle-class professionals like doctors received less
- Aristocrats and former factory owners (called the former people) received only about 25 per cent of workers' rations
At its peak, the system rationed 36 products and issued ration cards to 22 million people. Prodraspred (Section of General Distribution) administered this complex system, with subsections delivering rations to workers and a Community Section attempting to provide for schools and those unable to work due to illness or disability.
Workers in Moscow and Petrograd enjoyed additional benefits. Work cards entitled holders to free public transport. Communal dining halls were established in factories to feed workers - the government claimed that 93 per cent of Muscovites were regularly fed in such halls by 1920. Other communal facilities included laundries and crèches, partly designed to enable women to work in factories.
The Return of Privilege:
However, the system created new inequalities. Party members enjoyed special privileges, including access to exclusive shops where scarce food and goods were available - a stark contradiction of Communist ideals about equality.
Failures of War Communism: Despite its ambitious goals, the system proved unsustainable. Compulsory labour became impossible to maintain during the Civil War. By July 1920, fuel shortages forced factory closures. The government's desperate response was to force unemployed people to search for fuel or join food detachments - military-style groups that searched villages for food.
The Critical Failure of War Communism:
Most critically, War Communism never provided more than 50 per cent of the food and fuel people needed to survive. Workers initially turned to the black market for essentials. Eventually, many fled cities entirely, seeking work and food on farms.
The scale of exodus:
- Between 1917 and 1921, Petrograd's population fell by half
- The total factory workforce declined by 25 per cent
Ultimately, factory closures and food scarcity meant that War Communism failed to achieve its goal of full employment with social security for all workers.
The NEP period: Work and benefits in the 1920s
The return of unemployment
The New Economic Policy (NEP) marked a dramatic shift away from War Communism's principles. Lenin conceived the NEP as a return to state capitalism to promote economic growth. This pragmatic approach meant that compulsory work and guaranteed government benefits disappeared, and both capitalism and unemployment returned to Soviet society.
The Rise of Unemployment Under NEP:
Unemployment became a significant problem between 1921 and 1924:
| Year | Percentage of workforce unemployed |
|---|---|
| 1921 | 5.5% |
| 1922 | 8.6% |
| 1923 | 16.6% |
| 1924 | 18.0% |
By 1924, unemployment had more than tripled from its 1921 level, affecting nearly one in five workers.
Several factors drove this surge in unemployment:
Factors Driving Unemployment:
Demobilisation: In 1921 and 1922, soldiers returning from the Red Army struggled to find civilian employment in the damaged economy.
Urban return: Workers who had fled cities during the Civil War returned but found insufficient jobs available.
Rationalisation: The government attempted to make state industry profitable by reducing the workforce to lower labour costs.
Administrative cuts: As War Communism ended, approximately 225,000 administrators who had run the rationing system were dismissed.
The situation worsened in 1926 when productivity drives kept unemployment high. Government policies prioritised former Red Army soldiers for employment. Additionally, funding for crèches was eliminated, and traditional sexism combined with these factors meant women faced far higher unemployment than men. In 1922, women comprised 62.2 per cent of urban unemployed people.
Social insurance under the NEP
Despite unemployment problems, the 1920s saw the creation of an extensive benefits system for urban workers. Trades unions and local soviets administered these benefits:
The NEP Benefits System:
Labour rights: The 1922 Labour Law gave unions the right to negotiate binding agreements about pay and working conditions with employers - a significant protection for workers.
Comprehensive social insurance: The system covered nine million workers and provided disability benefits, maternity benefits, unemployment benefits and medical benefits. This represented the most comprehensive social insurance system in the world at that time.
Educational investment: The government invested substantially in education for urban workers and their families, improving literacy and skills.
However, this progressive system had a major limitation: peasants were almost entirely excluded from these benefits. The government's focus on the proletariat (industrial working class) meant rural workers missed out on the social security available in cities.
Living Standards by 1926:
By 1926, urban workers had clearly improved their conditions compared to pre-revolutionary 1913:
- They earned approximately ten per cent more
- They consumed more meat and fish
- They had access to comprehensive social insurance
However, peasants did not benefit from the social insurance available in cities, creating a sharp urban-rural divide in living standards.
Stalin's approach: Work and benefits under Stalin (1928–53)
Re-establishing compulsory work
Stalin's Great Turn deliberately moved away from the NEP's compromise with capitalism. The link between compulsory work and social benefits, which had been eroded during the 1920s, was re-established. Both the Five-Year Plans and Collectivisation aimed to build socialism by ending capitalist practices that Communists viewed as problematic.
Stalin's Priority: Production Over Welfare
For Stalin, Soviet workers represented a crucial economic resource, central to building socialism through rapid industrialisation. He wanted to ensure full employment to drive industrial growth. However, his approach prioritised economic construction over social welfare, meaning that economic growth did not translate into better quality of life for workers.
Employment and benefits in the 1930s
Full employment achieved: Rapid industrialisation created full employment for both men and women. Well-paid urban jobs attracted peasants fleeing the horrors and poverty of Collectivisation. However, full employment did not improve living standards significantly.
Deteriorating working conditions: Stalin did not prioritise worker safety. Working conditions worsened under the Five-Year Plans because speedy construction mattered more than clean, safe workplaces. Miners worked in dangerous conditions as meeting production targets took precedence over health and safety.
Harsh Labour Discipline Under Stalin:
Stalin revived many War Communism measures to control workers:
- Lateness was criminalised - workers could face criminal charges for arriving late
- Unions lost their right to negotiate with factory managers
- Damaging factory property became a criminal offence
- Strikes were banned completely
The continuous work week: Workers still received one day off weekly, but it rotated, changing from week to week. This meant factories and mines could operate seven days a week without closing on Sundays, maximising production but disrupting workers' lives.
Restricted mobility: In 1940, workers lost the right to change jobs. During the Five-Year Plans, high demand for labour had allowed workers to move between jobs seeking better pay and conditions. The 1940 restriction ended this freedom. Internal passports were introduced to prevent workers moving between towns without permission, severely limiting personal freedom.
Gradual improvements: Over time, the Five-Year Plans did lead to some improved benefits:
- Workers became entitled to food rations
- By 1933, most Soviet citizens had access to electricity
- During the 1930s, 30,000 km of new railways were built, with passenger traffic increasing by 400 per cent
- The Moscow Metro opened, providing underground transport in the capital
- Healthcare provision expanded significantly, including mass vaccination campaigns against smallpox, diphtheria, malaria and typhoid
- Factory and farm canteens provided meals for workers
Changed administration of benefits: A significant shift occurred in how benefits were delivered. Under the NEP, trades unions or local soviets had provided benefits. During the 1930s, benefits increasingly came through factories or collective farms. This re-emphasised the link between work and social welfare. New factories became the heart of company towns, where factories provided employment and administered benefits, including hospitals and housing.
Peasant Disadvantage Continues:
Peasants benefited far less than urban workers. They were not entitled to rations, and food was much scarcer on farms because the government seized most farm production. By the late 1930s, farm workers had to travel to towns to buy bread because so little food remained available on collective farms.
Soviet healthcare under Stalin
Stalin's healthcare system was closely linked to employment. Between 1929 and 1950, the government attempted to expand healthcare to all areas of society, though provision remained better in cities than in small towns or on collective farms.
Work-Focused Healthcare:
The system was designed primarily to keep workers healthy enough to continue working. Doctors were based at factories and collective farms, with instructions to reduce sickness-related absences year on year. Doctors were expected to be very strict about authorising time off for illness, prioritising production over worker wellbeing.
Unequal access: Although all Soviet citizens theoretically had rights to healthcare benefits, scarce resources meant unequal access in practice. Soviet healthcare operated a Party first policy: Party members were guaranteed vaccines and treatment, while other workers could only access any medicine that remained. Senior Party members could also organise special events like banquets paid for by government funds.
The Reality of Party Privilege:
This privileged access created radical inequalities. For example, in Dnepropetrovsk (a Ukrainian city):
- All Party officials were vaccinated against typhus
- Yet there were 10,000 malaria cases among workers in 1932
- And 26,000 cases in 1933
This demonstrated how Party privilege contradicted the supposed egalitarian principles of Communism.
Employment and benefits, 1945–53
Continued full employment: Full employment persisted after the Second World War. The industrial workforce grew from 8 million to 12.2 million between 1945 and 1950, largely due to returning soldiers re-entering the workforce.
Food Shortage Impact:
Food shortages significantly affected workers' benefits. Eating in communal canteens cost between 250 and 300 roubles monthly in 1947 - roughly half a worker's monthly wages. Workers under 18 were entitled to three subsidised meals daily in factory or farm canteens, but subsidies only covered 2.3 kg of meat and six eggs monthly. Most young workers, earning low wages in junior positions, could not afford the meals. Consequently, communal eating declined markedly after the war.
Healthcare improvements: Despite wartime destruction, healthcare improved significantly from 1940:
- Infant mortality declined by 50 per cent between 1940 and 1950
- The number of medical doctors increased by two-thirds between 1947 and 1952
- Vaccines for common diseases like typhus and malaria became universally available from 1947
- Malaria declined radically from 1949 onwards
Persistent Health Problems Despite Healthcare Expansion:
However, healthcare expansion did not improve overall population health. Food shortages, poor housing and war-caused poverty meant sickness rates remained high:
- The planned economy struggled to produce basic items like soap, warm clothing and shoes, leading to health problems
- Food problems were severe - work canteens used rotten food, animal feed and other products unfit for human consumption, causing illness
- Sanitation in factories and farms was often inadequate, leading to lice infestations and outbreaks of dysentery and vomiting
- Hygiene education was poor - not until 1947 was there a publicity campaign encouraging workers to "use the toilet in a civilised fashion" and wash hands afterwards
The average Soviet worker took between ten and thirteen days off sick annually in 1946, a figure that remained constant until the mid-1950s, demonstrating that expanded healthcare provision could not overcome the harsh living conditions.
Conclusion: Achievements and failures, 1917–53
Communist theory held that all people had a duty to work and a right to certain benefits. However, from 1918 to 1953, none of the economic systems implemented delivered a satisfactory relationship between work and benefits.
War Communism and the Five-Year Plans succeeded in making work compulsory for most of the population but consistently failed to ensure workers benefited adequately from the system. Working conditions remained harsh, and benefits often fell short of survival needs.
The NEP guaranteed industrial workers a wide range of benefits and created the world's most comprehensive social insurance system. However, widespread unemployment persisted, and benefits were not available to peasants, creating sharp inequality between urban and rural populations.
The Persistence of Privilege:
Finally, Communists never fully abolished parasitism, despite this being a central goal. Capitalist parasites may have been eliminated in 1928, but Party members continued to enjoy a privileged lifestyle based on their status rather than the work they performed. This represented a fundamental contradiction of Communist principles and created a new form of inequality that would persist throughout Soviet history.
Throughout this period, the gap between Communist ideals and Soviet reality remained substantial. The promise of full employment with adequate social security proved difficult to achieve in practice, undermined by economic challenges, policy priorities that favoured production over welfare, and the persistence of privilege for Party members.
Remember!
Key Points to Remember:
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Marxist theory shaped Soviet policy by emphasising that work, not property, should determine access to resources, but implementation consistently fell short of ideals
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War Communism (1918-21) introduced compulsory labour and class-based rationing but never provided more than 50% of people's basic needs, forcing many to flee cities
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The NEP (1921-28) created the world's most comprehensive social insurance system for urban workers but brought back unemployment and excluded peasants from benefits
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Stalin's Five-Year Plans achieved full employment but prioritised production over worker welfare, introducing harsh labour discipline and restricting workers' freedom to change jobs
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Party privilege persisted throughout the period, with Party members receiving better healthcare, food and benefits than ordinary workers, contradicting Communist principles of equality